“The trend is your friend” is an old saying on Wall Street. This means that when the market is trending higher, it’s likely to keep doing so. The first sign that an uptrend is about to end is the breaking of a trendline.
When markets are rallying, the bulls are in control. When they are heading lower, the bears are in charge. The breaking of an uptrend line means the bears may be about to take control.
As you can see on the following weekly chart of the SPDR S&P 500 ETF Trust SPY, the current uptrend began in early November. Until the uptrend line breaks, the bulls will remain in control.
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